Metals and Mining

Interpipe Novomoskovsk Pipe Plant [NVTR UZ, BUY] increased its pipe output 38%YoY to 143.9 thsd metric tons in 5M2008. The plant produced 32.1 thsd metric tons of pipes in May. The mill specializes in the production of welded pipes for oil and gas, water transportation and welded pipes for wider industrial applications. The company belongs to Interpipe.

Interpipe Nyzhnodniprovsky Pipe Rolling Works [NITR UZ, HOLD] increased its output 4% MoM to 52.6 thsd metric tons of pipes in May 2008. The mill also produced 252.2 thsd metric tons of pipes in 5M2008, reducing its production 1.3% YoY. NITR is one of the biggest Ukrainian pipe producers and the world’s second largest producer of railway wheels. The mill makes seamless pipes for the oil, gas and power industries, as well as produces railway wheels and tires.

Daniel Valk, the CEO of Dniprospetsstal [DNSS UZ, U/R], confirmed plans to implement a USD 200 mln investment program. The timeframe of the program changed from 2008–2009 to 2009–2012. Valk also projected net sales exceeding USD 800 mln for 2008. According to the CEO, EBITDA should increase at least 40% in 2008, surpassing USD 150 mln. According to Interfax-Ukraine, which reported from a June 05 investment forum, Valk noted increasing sales in Asia and North America, as well as opening an office in Chicago. Cheap Ukrainian labor, as well as favorable logistics for supplies on natural markets (Ukraine and the CIS), were mentioned as competitive advantage factors.

Zaporizhstal [ZPST UZ, Strong BUY] conducted an AGM on June 06. Some clarification has been given regarding the modernization program, including the USD 1.7-2.0 bln converter-concaster shop construction project. The company postponed profit distribution decision, and streamlined its management structure.

The third annual press conference of Metinvest Holding took place in Kyiv on June 06. The company officers reported the preliminary 2007 financial results, and confirmed some of its capital expenditure plans.

Nikopol Ferroalloys [NFER UZ, N/R], the largest Ukrainian ferroalloys maker, reduced its output 1.5% YoY to 447.5 thsd metric tons in 5M2008.

Enakievo ISW group, which includes OJSC Enakievo Iron & Steel Works [ENMZ UZ, BUY], reported the following operational results in 5M08: pig iron, 1.218 mln mt (+26.2% YoY); crude steel, 1.287 mln mt (+13.9%); rolled products delivered, 1.273 mln mt (+10.5%), of which finished long products 170.6 thsd mt (-85.6%).

Donetsk Metal Rolling Plant [DMPZ UZ, BUY] produced 13 thsd mt in May 2008, according to Interfax-Ukraine.

Azovstal [AZST UZ, BUY] reported its May production data. Pig iron, 459.7 thsd mt (+8.3% YoY); crude steel, 544.8 thsd mt (+6.3%); rolled products, 492.6 thsd mt (+7.8%). For 5M08, production of crude steel is up 2.3% to 2.62 mln mt, and output of rolled products is up 5.9% to 2.372 mln mt..

Avdiivka Coke [AVDK UZ, Strong BUY] has increased output by 39.5% to 1.982 mln mt in 5M08, according to UGMK.INFO. In May 2008, the plant reportedly produced 426 thsd mt of coke.